"When Rubenstein asked Solomon whether the U.S. faces a near-term recession, Solomon offered cautious optimism. "We've got a big, diverse economy," he said. "It's in pretty good shape at the moment. There are things we cannot see that could set it off, but I think the chance of a recession in the near term is low." Solomon pointed to the buildout of AI infrastructure as a key force supporting growth."
""You have six or seven large companies that are going to spend $350 billion [combined] this year on AI infrastructure-that has an effect on growth," he said. As AI becomes integrated into enterprise operations, Solomon expects meaningful productivity gains. Turning to the country's rising debt burden, Solomon said it will result in a "reckoning" if the economy does not grow faster."
"Turning to the country's rising debt burden, Solomon said it will result in a "reckoning" if the economy does not grow faster. "The path out really isn't a revenue path out," he said. "The path out is a growth path." The AI boom When Rubenstein asked whether the massive market capitalizations of major tech firms, some nearing $5 trillion, signal a potential bubble, Solomon offered a historical perspective."
David Solomon reported stronger-than-expected third-quarter earnings at Goldman Sachs driven by investment banking fees and trading revenue. He expressed cautious optimism about the U.S. economy and assessed near-term recession risk as low while noting unforeseen risks could arise. He identified the current buildout of AI infrastructure, including roughly $350 billion in planned spending by several large companies, as a major growth driver and source of future productivity gains as AI integrates into enterprise operations. He warned that rising public debt could produce a "reckoning" unless the economy grows faster and emphasized that the path out is growth rather than increased revenue.
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